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1)The risk-free rate is 2.6% and the expected market return is 7%.A risky stock has a beta of 1.9. If CAPM holds, what are the

1)The risk-free rate is 2.6% and the expected market return is 7%.A risky stock has a beta of 1.9.

If CAPM holds, what are the Treynor indexes of the market and the risky stock?

2)The risk-free rate is 0.6% and the expected market return is 10.5%.A risky stock has a beta of 1.52.

If CAPM holds, what are the Treynor indexes of the market and the risky stock?

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